Analysts Set DigitalOcean Holdings, Inc. (NYSE:DOCN) Price Target at $48.75

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have received an average rating of “Moderate Buy” from the fourteen research firms that are covering the stock, Marketbeat Ratings reports. Six investment analysts have rated the stock with a hold recommendation and eight have given a buy recommendation to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $48.75.

DOCN has been the subject of a number of analyst reports. Wall Street Zen upgraded DigitalOcean from a “hold” rating to a “buy” rating in a research note on Saturday. Barclays increased their price target on shares of DigitalOcean from $40.00 to $49.00 and gave the company an “overweight” rating in a research report on Thursday, November 6th. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 22nd. Canaccord Genuity Group boosted their price objective on shares of DigitalOcean from $55.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th. Finally, UBS Group raised their target price on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research note on Thursday, November 6th.

DigitalOcean Stock Performance

NYSE DOCN opened at $49.56 on Friday. The company has a market cap of $4.53 billion, a PE ratio of 19.98, a P/E/G ratio of 6.22 and a beta of 1.77. The firm’s 50 day moving average price is $45.12 and its 200-day moving average price is $36.71. DigitalOcean has a 52-week low of $25.45 and a 52-week high of $52.20.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Wednesday, November 5th. The company reported $0.54 earnings per share for the quarter, topping analysts’ consensus estimates of $0.31 by $0.23. The company had revenue of $229.63 million during the quarter, compared to analyst estimates of $226.55 million. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.DigitalOcean’s revenue was up 15.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.52 earnings per share. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS and its FY 2025 guidance at 2.000-2.050 EPS. On average, analysts forecast that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Institutional Trading of DigitalOcean

Institutional investors have recently made changes to their positions in the business. Norges Bank acquired a new position in DigitalOcean during the 2nd quarter valued at about $22,633,000. Alyeska Investment Group L.P. purchased a new stake in shares of DigitalOcean during the third quarter worth about $21,808,000. Vanguard Group Inc. grew its stake in shares of DigitalOcean by 5.0% during the third quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock worth $319,836,000 after acquiring an additional 442,617 shares during the last quarter. Danske Bank A S acquired a new position in shares of DigitalOcean during the third quarter valued at about $14,582,000. Finally, Lazard Asset Management LLC raised its position in shares of DigitalOcean by 34.5% in the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after purchasing an additional 426,264 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.